Plant Equipment and Hire March 2020 | Page 50

INSIGHT culture. Leadership must identify what employees want, what the company wants, and how to get there. It takes commitment and time, but it can be done. 3. Poor hiring There’s a saying, “When you just hire a pair of hands, you never get a head.” For long- term success, companies must hire people with the desire and ability to grow with the company and help lead. Warm bodies aren’t enough. This can be harder to do when hiring out of a union hall. But even in those circumstance, it’s probably better to pay any show-up costs and ask for a more qualified employee. That’s far less costly than carrying an employee who continues to perform substandard work or has a bad attitude. 4. Poor financial systems This is a big bullet point under the broader topic of capital and financial management. Many construction companies can’t track if they’re making or losing money until the very end of the year. I’ve even seen companies that fail to bill for all their work because they are so busy completing projects and doing estimates for new projects. Good financial systems are absolutely paramount to prevent such oversights. Accounting software can assist but won’t solve everything. A good accountant or in- house financial manager may be advisable —one that will provide detailed accounting at least every few months. 7. Family-run corporations These businesses have an even higher failure rate than the typical company. Family-run businesses have a unique set of challenges that generally hurt future generations more than the current generation. This is a complex issue with many facets to consider. 5. Inefficient operations Inefficiency rarely happens in big, easily identifiable chunks. Inefficiency typically impacts that company in 10-or-20-minute increments. A good example is a seven- person crew standing around on a jobsite waiting for a truck to show up. Over the course of the year, this type of wasted time can add up to the point that all profitability is sacrificed. Larry Kokkelenberg, the president at Center for Business Development, will host an education session at ConExpo- Con/Agg titled ‘Top Ten Reasons Why Construction Businesses Fail’. The session will take place Thursday, March 12 from 13:00 to 14:30. 6. Poor customer service A lot of companies do not listen to their customers very well. Companies just focus on completing the work according to the contract. If they get paid, they assume all is good. But remember, construction companies are in the business of serving customers, and that includes good customer service. CLASSIFIEDS 48 Tel: +27 (0) 11 420 1955 E-Mail: [email protected] Website: www.cpha.co.za The African Mines Handbook is produced in hard copy book form and online. It is the most comprehensive database on operational mines, mine projects and exploration undertakings throughout Africa. across Africa. www.mining.co.za MARCH 2020 Promoting Capital Equipment Exports. GREAT PRINT AND ONLINE COMBO OFFER NOW AVAILABLE. Tel: +27 (0) 11 849 7388 E-Mail: [email protected] Website: www.saceec.com CALL BEN : +27 82 940 0701 or EMAIL [email protected] African Mining (Incorporating Mining Mirror) is a monthly publication with a strong focus on the business and operational aspects of mining in Africa. | +27 (0) 11 579 4940 | www.MTEexpos.co.za | www.africanmining.co.za Promoting the development of the plant hire industry. CONTRACTORS PLANT HIRE ASSOCIATION GET SEEN www.equipmentandhire.co.za